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Updated April 1, 2010

We are pleased to confirm that Citadel Communications Company and DirecTV have finalized a new carriage agreement. The agreement achieves a goal of ours from the outset of these negotiations: terms and carriage conditions that are fair and reasonable to both parties. Importantly, it allows DirecTV subscribers to continue receiving Channel 8 KLKN-TV without any interruption whatsoever. Thank you for your patience, and the support shown us, over the past several weeks.

Updated March 31, 2010

We are pleased to report that our continuing discussions with DirecTV on the terms and conditions of a new carriage have been productive. So much so, that we have agreed to extend the current agreement through 1pm central time on Thursday, April 1, 2010. We are hopeful that the few remaining, but important, business issues which stand in the way of a new, final agreement can be resolved before this extension period lapses. Once again, we will do our best to keep you informed of any new developments.

Updated March 26,2010

In response to inquiries from some of our viewers who are DIRECTV subscribers, the following is an update on the status of our negotiations with DIRECTV for carriage of KLKN-TV Channel 8. Our existing carriage agreement with DIRECTV expires at 12 midnight, March 31, 2010, and in the absence of renewal of that agreement, DIRECTV will terminate carriage of KLKN. Should that occur, DIRECTV subscribers will wish to pursue other alternatives to receive the station. DIRECTV is the nation's second largest multichannel media distributor with substantial market power and financial and political resources. Our company, Citadel Communications Company, on the other hand, is a small, privately held company with four TV stations in the Midwest. We fully expect DIRECTV to engage in a massive public and government relations campaign to apply pressure on our small company to enter into an agreement that is favorable to DIRECTV, but which would disadvantage our company and the local viewers we serve. We submitted our initial carriage proposal to DIRECTV more than five weeks ago and have been in negotiations ever since. Our proposal is fair and reasonable, consistent with carriage agreements we have with other companies, and in line with publicly-reported information concerning these kinds of agreements with other program services. Even so, we have made numerous compromises in an effort to satisfy DIRECTV's demands. We are disappointed, however, in DIRECTV's refusal—so far—to conclude a mutually acceptable agreement in a timely fashion. We have advised DIRECTV that we are available on a "24/7" basis to meet with them to assure continued carriage of our station with no interruption of service nor inconvenience of any kind to DIRECTV's subscribers. A meeting was held on Friday afternoon, March 26 and we are hopeful the dialogue will carry over to the early part of next week. But should DIRECTV terminate carriage of KLKN, you may continue to receive it free, over the air; or from your local cable company; or from the DISH Network. We will keep you informed.

Posted March 24, 2010

This is a special advisory for our CHANNEL 8 KLKN-TV viewers who subscribe to the DirecTV satellite service. The carriage agreement which allows CHANNEL 8 KLKN-TV to be retransmitted by DirecTV is set to expire at midnight on Wednesday, March 31. Regrettably, our negotiations with DirecTV have reached a point where it appears unlikely that a new agreement will be reached. It is our sincere belief that the approach we've taken to these business discussions with DirecTV has been quite reasonable. We have sought to retain terms and carriage conditions commonly found in similar agreements successfully negotiated and currently in place with dozens of other cable and satellite providers. We are also asking DirecTV to compensate us fairly for the right to "re-sell" our programming. Importantly, our request is a fraction of what DirecTV is paying other program providers who have no local ties to our community, and whose ratings are a fraction of CHANNEL 8 KLKN-TV's.

At CHANNEL 8 KLKN-TV, we value and respect the loyalty of our viewers. We have had our signal removed from a pay program service such as DirecTV only once during our 10+ year history of serving the Lincoln television market. With that longstanding tradition in mind, please know that we will continue to work diligently to successfully resolve the open issues separating us and DirecTV, and we have communicated to them our willingness to "roll up our sleeves" between now and March 31 to get a new agreement in place - - one that is fair and equitable to both parties. In the meantime, DirecTV subscribers should be aware they could lose the shows they love - - shows that they are paying for - - like LOST, Dancing with the Stars, Desperate Housewives, Modern Family, Grey's Anatomy, NASCAR, Ellen, Dr. Phil and even the upcoming NBA Finals. Not to mention Channel 8 Eyewitness News. DirecTV customers should know that CHANNEL 8 KLKN-TV will still be available free over-the-air, by cable or by the Dish Network.

You may wish to send a message to DirecTV: "Lose my shows, lose my business!" We pledge to keep you updated on the progress of our negotiations. For more information contact: Roger Moody Jeff Swanson Senior VP/General Manager Director of Broadcast Operations 402.436.2235 402.436.2238 Or by email: Or by email:

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